The Future of Fintech in2020 looks so promising that it just may be the best year for Fintech until now. For decades technology and financial services have been evolving together. This partnership has made a competitive and accessible market for Fintech; as it is creating a positive impact on society and the economy.
If we take a look at the past, it was in the 1950s when was introduced the credit card, with the purpose of move away from carrying cash. On to the 1960s, the ATM comes to replace cashier. Nowadays, with the technological advances and a big segment of millennials taking power in the world, the fintech industry will need to take advantage and implement new strategies that will bring them to success next year.
These are 7 Fintech Trends for 2020.
- Robotic Process Automation.
A Robotic Process Automation (RPA) process allows us to “organize” computer software or a “robot” in order to integrate the actions of a human being. These actions are related to logging into applications, completing forms, provide useful information and provide analytics. By this time, 75% of financial institutions and banks are starting using RPA software. With the purpose of helping banks increase effectiveness and wipe out idle time, and easily repeatable tasks. Applying RPA it’s cheap and it will drastically reduce human involvement in tedious tasks.
- Libra Cryptocurrency.
Facebook has more than 2 years, co-founding the project Libra. It will be officially launching this 2020. As we know, cryptocurrencies have become highly popular in recent years. It may seem like a new type of cryptocurrency pops up every day. Libra is looking to make money transfer a lot easier and cheaper. It is going to be use for payments across their own platforms and will also be accessible for general e-commerce, payments, remittances and much more.
- No more cash
Over the year cash has become impractical, especially for young generations. According to Interesting Engineering, in Sweden, only 13% of the whole population uses cash today. In this digital era, payments are easier thanks to debit or credit cards, and app or services, just as Apple pay, Google pay, etc. Citibank said that in 2018, about $225billions payments were done digitally. This trend will be an open door for new innovation and projects between companies as it happens in Sweden.
- Millennials Network
The generation of now, Millennials are the largest generation in the workforce. Our first mistake is to compare them based on baby boomers’ old metrics and consider them as “the poor generation”. When the truth is that they are just choosing to invest in different assets such as technology and building a successful career seems to be their main priority. As they grow in the digital era, Millennials are excellent candidates for future positions in growing tech-related industries such as FinTech.
- Voice Technology
It’s normal to relate voice technology with Siri, Alexa or Google Assistant. This 2020, it will be a new thing in fintech operations. As we mentioned before, younger generations are taking place in the finance world, affecting directly the trends on fintech. Financial institutions are looking to integrate some voice tech to offer customers the ability to complete various backing tasks. It could use to make mortgage payments, viewing the current balance or transferring money to other accounts.
- Big Data
Let’s first describe the big data flow, which is also known as the big data 3 V’s. Those three important points are variety, volume, and velocity. The banking industry generates data on every step and it is expected that the amount of data generated will increase massively by 2020. This will bring immense value to the industry and those who are able to process this data goldmine means gaining a competitive edge over the rest of the financial institutions.
- Mobile Payments
72% of customers access their bank’s accounts online and only 18% would rather go to a bank branch. As we can see with the other trends, millennials are taking the power and cash is no longer useful. As more clients are moving into a digital wallet and the collaboration between financial and non-financial institutions are the key to expand and improve payments experience. Younger consumers love the convenience of moving money from their mobile phones and they will end up forcing traditional banks and payment players to implement a functional mobile payment.
We can tell that the future for fintech seems very promising. A lot of technology implementations are coming in order to improve their services and customer experiences. Now that the participation of new generations as millennials is increasing in the bank industry, agile evolution needs to be their priority.